June 16, 2023

St. Louis 1Q23 Multifamily Market Insights Report: After a brief pause in deliveries, activity to ramp back up

Highlights:

After more than two years of steady improvement, operating conditions in the St. Louis multifamily market softened modestly during the first quarter. The vacancy rate inched higher, and asking rents ticked lower.
The vacancy rate trended higher to start 2023 but remains below the historical average in the market. Vacancy rose by 20 basis points during the first quarter to 4.2%. Year over year, the rate has increased by 20 basis points.
After two years of rapid rent growth, asking rents inched lower during the first quarter. Area rents dipped 0.2% to $1,173 per month. Despite a minimal drop in the first quarter, local rents advanced 6.5% during the past 12 months.
Sales activity in the St. Louis multifamily investment market continued to slow in recent months, although per-unit prices rose in the transactions that closed. In transactions where pricing is available, the median sales price year to date is $108,300 per unit.